Flexible workspace specialist “strong and resilient” despite rent deferrals

A London provider of flexible workspace has maintained it remains ‘strong’ in the face of the ongoing COVID-19 pandemic and subsequent business disruption.

Workspace Group, which specialises in flexible office spaces across London, has said it is in a “strong financial position” despite having only received 50 per cent of rent payments for March.

The firm, which is in rent deferral discussions with customers on a case-by-case basis, stated that it holds around £70m in cash reserves as well as £96m in undrawn revolving credit facilities.

Graham Clemett, chief executive officer, commented: “In the face of the systemic risk of the Coronavirus pandemic, the board is focused on balancing the interests of stakeholders and shareholders and the long-term sustainability of our business.

“We are taking prudent steps to mitigate the impact of rent deferrals by implementing cost reduction measures and minimising capital expenditure. We have a strong balance sheet, good access to liquidity and significant headroom against our debt covenants.

“Workspace is a strong and resilient business, with a leading market position in the London flexible office market. The swift actions we have taken will ensure that we are well-positioned for the eventual market recovery.”